Foreign Direct Investment and the Single Market

FDI

Regime '

Sales in Country i by

Sales in Country j by

MNC: x^t₀

Firm i: xⁱ_i

Firm j: xⁱ_j

MNC: X₀

Firm i: x^j_i

Firm j: x^j_j

0: X

ɪ-t

2

-

-

1-t

2

-

-

0: F1

ɪ
2

-

-

l-τ

2

-

-

0: Fn

ɪ
2

-

-

ʌ
2

-

-

n: X

1 -(n+l)Z+(n-l)τ

l+f+(n-l)τ

l+f-3τ

l-(n+l)f+(n-l)τ

l+f-3τ

l+f+(n-l)τ

n+2

n+2

n+2

n+2

n+2

n+2

n: F1

l+(n-l)τ

l+(n-l)τ

l-3τ

l-2τ

l-2τ

l+nτ

n+2

n+2

n+2

n+2

n+2

n+2

n: Fn

l+(n-l)τ

l+(n-l)τ

l-3τ

l+(n-l)τ

l-3τ

l+(n-l)τ

n+2

n+2

n+2

n+2

n+2

n+2